Company Number: 12780897

Analysis Date: 2025-07-29 16:56 UTC

1. Credit Opinion: DECLINE
   Hargate Homes Limited exhibits a persistently weak financial position with significant net current liabilities (£18,875 as of 2024) and negative shareholders' funds (£18,876). The company has been operating at a loss with an increasing deficit and minimal liquid assets (cash of only £21). The lack of employees and limited operational scale increase risk. Without substantial equity injection or improved cash flow, the company’s ability to service debt or meet commercial obligations is highly doubtful.

2. Financial Strength:
   The balance sheet shows a consistently negative net asset position over the last 3 years, indicating ongoing accumulated losses and erosion of capital. Current liabilities exceed current assets by a wide margin, reflecting poor working capital management. The company holds minimal fixed assets, and no significant tangible asset base is apparent to support borrowing. The sole director holds 100% control but has not injected additional capital to strengthen equity.

3. Cash Flow Assessment:
   Cash balances are negligible (£21) compared to creditors (£22,396), and working capital is deeply negative. Debtors of £3,500 provide limited short-term liquidity. The company’s operating model does not appear to generate sufficient internal cash flow to cover liabilities. Lack of employees and limited turnover data imply low operational activity and poor cash conversion capability.

4. Monitoring Points:

• Track cash balances and current liabilities quarterly to assess liquidity trends.
• Monitor any capital injections or director loans that improve equity.
• Review filings for signs of turnaround plans or restructuring.
• Watch for overdue filings or director changes that could indicate distress.